Talley's extends Affco offer deadline

A worker pushes a beef carcass into one of the freezers at the Affco's Horotiu plant, north of Hamilton. Photo / NZ Herald

Talley's Group has extended the deadline on its 37 cents a share offer to minority shareholder in listed meat processor Affco by two weeks, saying the price offers an attractive exit opportunity.

The offer, which now expires on September 20, comes after an independent committee commission by the Affco board recommended that shareholders retain their stakes unless they are looking for dividends in the short and medium term.

In a statement today, Talley's reiterated that the price falls well inside the valuation range of 34 to 44.4 cents assessed by an independent advisor, and said it presented an attractive opportunity for investors to sell their Affco shares which have very limited trade and liquidity.

The offer comes after Talley's negotiated to buy a 23.5 per cent stake in Affco, held by the Spencer family's Toocooya Nominees Ltd, taking its holdings to 76.3%, triggering an automatic offer for all outstanding shares under the Takeovers Code.

Affco, New Zealand's fourth largest meat processor and exporter, was established in 1904 and currently operates nine plants in the North Island and two plants in the South Island.

Shares Affco were unchanged today at 38 cents, and crept over the Talley's offer on August 16 The stock has traded in a tight range between 33 cents and 40 cents since October 2009.